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Owning a car is a necessity for most of us. However, road vehicles can be harmful to the planet and our health* in the long run.

 

So how do we make travelling by car more sustainable? One solution that is increasingly popular is electric vehicles (EVs) or electric cars. The biggest selling point of an EV is the zero petrol-use feature. Electric vehicles run on electricity – which means that you never have to worry about fluctuating petrol prices ever again.

 

One of the downsides to electric vehicles was the lack of charging stations, but this is changing fast. EV charging stations are becoming more common in shopping malls, new developments and even petrol stations. In fact, Malaysia aims to install 10,000 EV charging points** by 2025 through the Low Carbon Mobility Blueprint programme.   

 

Electric cars like Tesla, Nissan LEAF, and BYD Atto 3 are currently at the centre of the attention of car enthusiasts across the country. If we look at the numbers, only 270 units of electric cars were sold in 2021, but the number grew significantly in 2022 with about 2600 units sold. So, should you jump on board and consider buying an electric vehicle too? Let’s take a look!

 

Tax-Free Incentives 

While EVs are a necessity to save the environment, there are various other benefits on offer for electric car drivers which make them ideal as your next vehicle.

 

When you buy an electric car, you won’t have to pay the road tax and you will also get a personal tax exemption of up to RM2,500 for expenditure on purchase, installation, rental or subscription fees of EV charging facilities or hardware and services. Currently, these benefits apply to EV owners until the end of 2023**.

Preferential Rate On EV 

On top of no petrol, you can also get a preferential rate on your car loan or car financing. For example, CIMB offers a preferential rate for hybrid or electric car loan or car financing, and offer a comprehensive EV financial solution. 

Environmental Benefits

According to the Air Quality Index (AQI), Malaysia ranked number 59 out of 131 countries in terms of air pollution in 2022****.

 

Unfortunately, nitrogen dioxide emissions from cars, trucks, buses, and other forms of transportation are the major contributors to this issue. While it's not great news, awareness is the first step towards taking action to improve our air quality.

 

So how can EVs help to advance environmental sustainability? Well for one, an electric vehicle does not produce tailpipe emissions and can help improve local air quality. This is good news, especially for those living in big cities or near highways.

 

EV cars can also help to reduce dependence on fossil fuels as they rely solely on batteries. The production of electric vehicle (EV) batteries has environmental impacts but they are much less***** polluting than petrol and gas emissions over the life cycle of the vehicle. Additionally, efforts are being made to improve the sustainability of EV batteries, such as through recycling and using more environmentally friendly materials.

Wide Range of EV Options

A major myth in the market is that electric cars are priced at very hefty price tags, ranging from RM400,000 – RM500,000 upwards. But just like any other car, EVs come in a range of prices starting from RM100,000+.

 

For an EV car owner, the biggest cost advantage is the overall low operating cost over time. The cost of electricity is generally lower than the cost of petrol, and electric cars can travel further on the same amount of energy compared to petrol cars. This means that you can save significant money on fuel costs over the life of the vehicle.

 

EVs also have fewer moving parts than petrol cars, which means that they require less maintenance. For example, EVs don't need oil changes, and their regenerative braking systems help reduce wear and tear on brake pads. This can translate into lower maintenance costs for owners of electric cars.

 

 

So if you're considering buying a new car, why not give an electric car a chance? In addition to their environmental benefits, EVs can save you money on fuel and maintenance costs over time. EV technology will likely continue to improve and the ease of owning an electric car is only likely to increase. Give an EV car a test drive today!

 

This article is for informational purposes only and CIMB does not make any representation and warranty as to the accuracy, completeness and fairness of any information contained in this article. As this article is general in nature, it is not intended to address the circumstances of any particular individual or entity. You are advised to consult a financial advisor or investment professional before making any decisions based on the information contained in this article. CIMB assumes no liability for any consequences arising from your reliance on the information presented here.

 

 

Sources:

 

*https://www.freemalaysiatoday.com/category/nation/2022/07/09/kl-traffic-jams-can-create-heat-bubbles-says-expert/

 

*https://pubmed.ncbi.nlm.nih.gov/36228692/#:~:text=Road%20transport%20contributes%20over%2070,to%20the%20urban%20population's%20health.

 

**https://www.malaymail.com/news/malaysia/2023/02/14/nik-nazmi-malaysia-to-install-10000-ev-charging-points-by-2025/54935

 

***tax incentive - https://www.aseanbriefing.com/news/electric-vehicles-in-malaysia-tax-incentives-for-owners-and-manufacturers/#:~:text=Owners%3A%20EV%20owners%20are%20exempted,until%20the%20end%20of%202023.%22

 

****https://www.iqair.com/malaysia

 

*****https://climate.mit.edu/ask-mit/are-electric-vehicles-definitely-better-climate-gas-powered-cars

 

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